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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Meathead who wrote (48309)	6/20/1998 11:02:00 AM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176388

Meathead - very interesting, just what I needed! There are 20 pc firms listed, almost all of them nationally known, reputable firms -- impressive. The tremendous fragmentation of the industry is further shown by "other vendors", each of them with less than .4% market share that together comprise nearly 30% of the industry! These data, when combined with profitability data on the largest firms in the industry, strongly suggest that large market share is not an advantage. If it were, CPQ, HP, IBM and PBell should not be losing money while dozens of smaller firms still survive. Why then are CPQ and HP pursuing market share like it was the holy grail? HP has proclaimed #1 market share as its principal goal. I have yet to see a convincing argument that would justify its strategy of sales maximization. Successful firms lead the way in innovating, trimming costs, investing capital where it has a high return, and finding better ways to serve their customers. They let market share take care of itself. Market share is not an end in itself because it's not size that matters-- it's profit. Geoff